Main economic branches of the Murmansk region Extractive industries (metal ores and phosphates); Metal industries (copper, nickel, aluminium, precious metals); Generation of electricity; Fishing and fish-processing; Transport; Naval bases.
Main economic branches of the Republic of Karelia Extractive industries (iron ore and non- mineral construction materials, e.g. gravel); Pulp-and-paper industry; Metals and metal products; Forestry and wood-working; Shipbuilding; Transport and tourism.
Main economic branches of the Leningrad region Transport (new seaports and pipelines); Construction + construction materials; Trade (retail and wholesale); Food industry (poultry meat processing); Shipbuilding and automobile industry; Chemicals and oil products; Pulp-and-paper industry; Generation of electricity.
Main economic branches of St. Petersburg Trade and services (education, healthcare, tourism, etc.); Construction and construction materials; Transport and communications; Food industry; Power engineering industry; Shipbuilding and car industry.
Corporate structures: Most big companies are not independent – they are usually part of larger corporations: –RUSAL owns: Volkhov, Kandalaksha and Nadvoitsy aluminium smelters and Pikalevo alumina comibine; –Severstal owns: Kostomuksha and Olenegorsk mining combines and Izhora Pipe-making Plant; –Silovye Mashiny Corp. owns: Elekrosila, LMZ and ZTL; –Investlesprom owns Segezha Paper Mill; –Rosatom owns Petrozavodskmash, etc.
Main sectors of growth in St. Petersburg Residential and non-residential construction; Industry: automotive and foodstuffs; Rapid development of trade and services; Relocation of headquarters of several Russian oil and gas companies to the city
Development dynamics of the Leningrad region Rapid development of transport: oil and gas pipelines, seaports, railways; Strong growth in some industries: chemicals, automotive, foodstuffs, wood- processing, pulp-and-paper; Housing construction boom.
Russian Karelia & Murmansk region: STAGNATION Karelia: positive dynamics only in extractive industries (iron ore and construction materials); Murmansk: there are hopes to gain from expansion of Murmansks seaport, while the Shtokman gas project has been delayed.
3. Economic Development Policies: Federal economic policies Regional economic policies
Federal economic policies: Public-private partnerships (e.g. the development of the Pulkovo Airport); Deal for the car industry: –The Government abolishes customs duties on car parts, while car manufacturers localize supplies for their car plants in Russia; Deal for the wood-working industry: –The Government increases export duties on Russian round-wood, and offers special preferences for investors in large wood- processing ventures in Russia.
Regional economic policies: Regions differ a lot in terms of their policies; Russian Karelia and Murmansk region have the reputation of closed regions; St. Petersburg and Leningrad region are more open: –Tax holidays for investors; –Technical assistance to investors; –Lobbying for large-scale projects in Moscow.